AI Terminal
GEMFIELDS GROUP LIMITED
Investor Presentation • Dec 10, 2021
7667_rns_2021-12-10_7eab5883-99a1-4b99-a699-dd8c658958dc.html
Investor Presentation
Open in ViewerOpens in native device viewer
National Storage Mechanism | Additional information 
RNS Number : 2046V
Gemfields Group Limited
10 December 2021
Incorporated in Guernsey. Guernsey registration Number: 47656.
South African external company registration number 2009/012636/10
Share code on JSE:GML / AIM:GEM
ISIN: GG00BG0KTL52 | LEI: 21380017GAVXTCYS5R31
("Gemfields" or the "Company")
Record Ruby Auction Results
LONDON, 10 DECEMBER 2021
Gemfields is delighted to announce the results of a ruby auction comprised of seven sequential mini-auctions held during the period 8 November - 9 December 2021. The auction delivered an all-time high for MRM ruby auctions and contained a selection of grades that are typically offered at Montepuez Ruby Mining Limitada's ("MRM") auctions of mixed quality rubies. Selected lots were made available for in-person and private viewings by customers in Bangkok, Dubai and Jaipur. Following the viewings, the auctions took place via an online auction platform specifically adapted for Gemfields and which permitted customers from multiple jurisdictions to participate in a sealed-bid process.
The rough rubies were all extracted from the mining licence held and operated by MRM (which is 75% owned by Gemfields and 25% by Mozambican partner Mwiriti Limitada).
Highlights - November & December 2021 Ruby Auction
· Total auction revenues of USD 88.4 million, an all-time high for MRM ruby auctions
· Average price of USD 132.47 per carat
· Of the 107 lots offered, 104 were sold (97%)
· 98% of the carats offered at the auction were sold
· The 15 auctions of MRM gemstones held since June 2014 have generated USD 731.5 million in total revenues
· Gemfields' annual gemstone auction revenues reach an all-time high of USD 239.6 million (across emeralds and rubies), with the prior record having been USD 200.6 million in 2019.
Adrian Banks, Gemfields' Managing Director of Product & Sales, commented:
"This has been the strongest ruby auction in Gemfields' history and we're very pleased with the trajectory and growth of the downstream ruby sector. Professionalised and dependable supply has always been the key to unlocking growth. The strength of the results we've seen this week for both emeralds and rubies means that Gemfields has achieved a new record for annual gemstone auction revenues of USD 239 million, a very pleasing result for 2021. We extend sincere thanks to our 2,500 team members worldwide, to our host governments in Mozambique and Zambia, to our business partners and of course to our customers for their ongoing support."
The auction saw 49 companies placing bids and generating record revenues of USD 88.4 million with an overall average value of USD 132.47 per carat. The auction saw 97% of the number of lots, and 98% of the offered carats, being sold. Gemfields' annual gemstone auction revenue reached a new record of USD 239.6 million in 2021, the prior record having been USD 200.6 million in 2019).
The results of the five most recent mixed quality ruby auctions are summarised in the table below (and earlier results are available at www.gemfieldsgroup.com):
| AUCTION RESULTS | Dec '18 AUCTION |
Jun '19 AUCTION |
Dec '19 AUCTION |
Mar-Apr '21 AUCTION (7 sequential mini-auctions) |
Nov-Dec '21 AUCTION (7 sequential mini-auctions) |
| Dates | 10-14 Dec 2018 |
11-15 Jun 2019 |
10-14 Dec 2019 |
15 Mar - 8 Apr 2021 | 8 Nov - 9 Dec 2021 |
| Location | Singapore | Singapore | Singapore | Various/ Online | Various/ Online |
| Type | Rough Ruby (Higher, Medium and Commercial Quality), no Corundum | Rough Ruby (Higher, Medium and Commercial Quality), no Corundum | Rough Ruby (Higher, Medium and Commercial Quality), no Corundum | Rough Ruby (Higher, Medium and Commercial Quality), no Corundum | Rough Ruby (Higher, Medium and Commercial Quality), no Corundum |
| Carats offered | 685,363 | 978,197 | 1,158,114 | 726,610 | 681,013 |
| Carats sold | 655,623 | 962,211 | 927,130 | 343,952 | 667,589 |
| No. of lots offered | 90 | 90 | 104 | 94 | 107 |
| No. of lots sold | 88 | 84 | 91 | 89 | 104 |
| Percentage of lots sold | 98% | 93% | 88% | 95% | 97% |
| Percentage of lots sold by weight | 96% | 98% | 80% | *47% | 98% |
| Total sales realised at auction | USD 55.3 million | USD 50.0 million | USD 71.5 million | USD 58.9 million | USD 88.4 million |
| Average per carat sales value | USD 84.32/carat | USD 51.99/carat | USD 77.12/carat | USD 171.33/carat | USD 132.47/carat |
(*) One lot of 76,343 grams (representing some 53% of the total weight offered) remained unsold at the March/April 2021 auction. As a result, the average price per carat realised at this auction was considerably higher than it would have been had this lot also been sold.
The specific auction mix and quality composition of the lots offered at each auction vary in characteristics such as size, colour and clarity on account of variations in mined production and market demand. Therefore, the results of each auction are not always directly comparable.
-ENDS-
Further information on Gemfields Group Limited can be found at:
To join our investor mailing list, contact us on:
For any press enquiries please contact us on:
ENQUIRIES
| GEMFIELDS | Sean Gilbertson / David Lovett / Mark LawrieT: +44(0) 20 7518 3400 |
| SPONSOR (JSE) | Investec Bank Limited |
| SEDIBELO SALE PROCESS | Liberum Nehal Patel T: +44(0) 20 3100 2222 |
| NOMINATED ADVISER (AIM) & JOINT BROKER |
finnCap LimitedChristopher Raggett / Tim Redfern / Edward Whiley T: +44(0) 20 7220 0500 |
| JOINT BROKER | Liberum Scott Mathieson / Kane Collings T: +44(0) 20 3100 2222 |
| FINANCIAL PR/ IR | Camarco Gordon Poole / Emily HallT: +44(0) 20 3757 4980 |
ADDITIONAL INFORMATION ON GEMFIELDS
Gemfields is a world-leading supplier of responsibly sourced coloured gemstones. Gemfields is the operator and 75% owner of both the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world). In addition, Gemfields also holds controlling interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique, Ethiopia and Madagascar.
Gemfields' outright ownership of Fabergé - an iconic and prestigious brand of exceptional heritage - enables Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones, advancing the wider group's "mine and market" vision.
Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide a consistent supply of coloured gemstones to downstream markets, a key component of Gemfields' business model and has played an important role in the growth of the global coloured gemstone sector.
GEMFIELDS
GEMFIELDS.COM | INVESTORS |FOUNDATION
INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE
FABERGÉ
FABERGÉ.COM | INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE
KAGEM MINING LINKEDIN
MONTEPUEZ RUBY MINING LINKEDIN
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
MSCDBBDDLDGDGBC